Home Insurance Guide

There are six types of homeowners insurance (HO-1, HO-2, HO-3, HO-4, HO-6, HO-8) and each one refers to a different type of homeowners insurance policy. The types differ by what they cover (named perils) and what they don’t, differ in price (obviously, since they differ in coverage), but what they cover is standardized by the industry though a particular company may change what they cover slightly.

HO-1: This is the most basic homeowners insurance policy that covers only eleven named perils which includes fire, lightning, windstorms, explosion, riot, theft, vandalism, smoke and volcanic eruption!

HO-2: This is called the broad homeowner insurance policy because it covers seventeen named perils, the ones covered in HO-1, plus ones like falling objects, snow and ice, freezing of plumbing, and damage as a result of faulty electrical and heating systems.

HO-3: This is called the special homeowners policy and what most people have, this one is written slightly different. The HO-3 covers against everything, up to dollar limits, except those they specifically enumerate. HO-3’s will typically exclude earthquake, floods, war and nuclear accidents among others. Each exclusion will be explicitly named.

HO-4: The HO-4 is renter’s insurance. It will cover what the HO-2 does but it does not insurance the structure.

HO-6: Like the HO-4, the HO-6 doesn’t cover the structure but it does protect your personal property and adds in liability coverage. This is what condo and co-op owners typically sign up for since the building structure itself will be covered by the building itself (or the co-op organization).

HO-8: The most exotic of the homeowners insurance policies, the HO-8 is usually for owners of homes that are very old. Insurers see the replacement cost of an older more exotic home with original materials is ridiculously high so the HO-8 is main option. It will cover you against the eleven named perils in an HO-1 and promises to repair the damage or pay you cash value of your home.